LuxAid Demonstration Fund

We are seeking innovative solutions that have already demonstrated their commercial viability and impact. The goal is to assist the enterprises to achieve even greater growth and impact by overcoming barriers to accessing capital, while reducing market disruption risks.

The LuxAid Demonstration Fund provides support to enterprises for project implementation spanning 1 to 2 years, assisting them in addressing various challenges such as expanding their customer base, adjusting their business model to cater to new market segments, enhancing production capacity, and preparing for external investment, among others.

The LuxAid Demonstration Fund offers co-financing of up to EUR 350,000, representing on average 50% of total project costs.

Support can be used for any expenditure relating to the acquisition of equipment, intangible goods or technical assistance, etc.

In the short term, the LuxAid Demonstration Fund support aims to scale up supported solutions, extending their impact to new market segments and broader geographic areas.

In the longer term :

• Mobilising external capital to facilitate solution expansion, resulting in a tenfold impact for local populations;
• Inspiring other businesses to develop similar products or services, increasing the number of beneficiaries, especially among vulnerable populations;
• Measurable impact on achieving the SDGs.

Applications are assessed against the following selection criteria:

• Innovation and cost-effectiveness: For a solution to be considered innovative, it must sufficiently distinguish itself from products, services, or approaches already present in the local market. This may involve differences in design, distribution, target audience, economic model, and anticipated resilience to future developments;
• Societal impact and futureproof: The solution must contribute to the Sustainable Development Goals, such as job creation, poverty reduction, access to healthcare, preservation of ecosystems and biodiversity, and combating climate change, etc. Projects must take into account adaptation to future risks and trends;
• Project viability and financial sustainability: Partners must demonstrate that the project will be able to generate revenue in the short or long term, ensuring its continuity beyond the co-financing period. Projects with opportunities for additional funding after the project ends will be prioritised;
• Additionality and neutrality of co-financing: Projects must provide added value that would not have been created without the financial support of the LDF. However, the LDF cannot create market distortion by co-financing projects similar to initiatives already present in the market;
• Execution capacity: enterprises must demonstrate sufficient execution capacities for the size of co-financing granted. This includes but is not limited to management capacities, production knowledge and accounting standards.

LuxAid Demonstration Fund aims to strengthen innovative and inclusive economic models acting on the vicious circle of poverty and access to basic socio-economic goods and services. A “do no harm” selection approach is applied.